2016, Volume 69 - Issue 4
ISSN: 2499-8265
RSS feed citation: At RePEc
Publication date: 13 October 2016
EMU AND THE ANCHORING OF INFLATION EXPECTATIONS
David Mayes, Maritta Paloviita, Matti Viren
Read the articleCOMPARISON OF THE FUNDAMENTAL AND MONETARY MODELS OF THE DETERMINANTS OF THE ARGENTINE PESO/US DOLLAR EXCHANGE RATE
Read the articleTHE IMPACT OF RECENT CRISIS ON THE REAL ESTATE MARKET IN THE UAE: EVIDENCE FROM ASYMMETRIC METHODS
Safa Al-Mohana, Abdulnasser Hatemi-J
Read the articleWHAT DRIVES LONG-RUN ECONOMIC GROWTH? EMPIRICAL EVIDENCE FROM SOUTH AFRICA
Themba Chirwa, Nicholas Odhiambo
Read the articleMatti VIREN, University of Turku and Bank of Finland, Helsinki, Finland
317-340
This paper deals with the slowdown of economic growth in Europe. For that purpose, we focus on factors that affect the long-run growth path of different economies. Special emphasis is paid to institutional and structural factors that are often assumed to affect aggregate growth: functioning of labor markets, availability of labor and capital, and the size of government. For more explicit measures, we use the data on profit rates, average working hours, various dependency ratio indexes, tax rates, other measures of the size of government, and measures of price competitiveness. Empirical analysis makes use of cross-country panel data from EU15 countries for 1971-2014. Estimation results suggest that profitability and competitiveness do indeed constitute the main determinants of growth. However, also other variables like average working hours and the size of government appear to affect growth in an important manner. All in all, slowdown of growth in Europe does not appear to be beyond reasonable explanations. Thus, more ambitious growth rates may be achieved with well-designed policies.
O40, O43
Growth, Working Hours, Taxes, Competitiveness
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